Grant paves the way for ethanol blend plant in Mackay

BP Australasia was set to build an ethanol blend plant at its North Mackay terminal in coming months, regional president Gerry Hueston said yesterday.

Mr Hueston was commenting after the state government announced a $236,500 Sugar Industry Innovation Fund grant towards the project.

The money is expected to go towards marketing and construction.

''The plant will enable quality blending of ethanol with petrol in Mackay and substantially improve the logistics of supply of E10 to the area,'' Mr Hueston said.

The project should create 40 jobs during construction.

BP and its Queensland distributor, Reliance Petroleum, have been marketing E10 in the Mackay region for 17 months.

According to the company, the current market promotion was witnessing much larger volumes of E10 consumption in the region.

''We think E10 and biofuels have real potential where the consumer can be assured of the quality of the product,'' Mr Hueston said.

''It is good to see consumers responding, not just in Mackay, but in other parts of Queensland.''

Member for Mackay Tim Mulherin said the economic benefits the extra workers would bring was great news for the city.

Minister for State Development Tony McGrady said ethanol currently produced in the region was sent to Melbourne for drying and then shipped to Brisbane where it was blended with unleaded petrol to produce E10.

''The full production of fuelgrade ethanol will occur in regional Queensland ? from cane growing right through to drying, blending and on to the sale of E10 at petrol stations,'' Mr McGrady said.